How can you protect yourself from the risk of property fraud
In the first few years of this century, everybody was being advised, even by governments, that the pension strategy in place was not going to be able to cope, as the population effect of the 'Baby Boomer' years meant more and more people would be drawing pensions, and probably all living longer as well!
So, what did they do - they actively encouraged everybody to go out and invest in property. Not just a home, but as an investment. Not only that, the banks made it even easier by coming out with the 'Buy to Let' mortgage, so that all of a sudden, even though you may have struggled to get a 70% mortgage on your home based on borrowing up to three times your annual salary, now you could go and buy as many investment properties as you liked - as long as each investment 'stood on its own feet' in terms of rental incomes more than covering the amounts borrowed. No account was made of your ability to 'afford' these investments.
Everybody stood to gain - the government, the banks, the solicitors, the valuers, the developers, the investors, even the tenants.
But what about regulation? Who made sure that the properties were not over-valued, that the predicted rental incomes would have been sufficient to cover the costs?
Why, the government, the banks, the solicitors and the valuers of course. All 'Pillars of Society,' all covered by rules and regulations, along with professional standards and rules. All of which stood to gain handsomely as the 'Buy To Let' market expanded out of all expectations, on a world wide basis.
There was a saying in southern Spain that the national bird was now the 'crane' (not the feathered variety.)
As massive profits came flooding into the banks, the government, the solicitors, the valuers, with insufficient or ineffective controls and rules in place, the temptation to 'bend' or even 'flout' the rules possibly became too great for some greedy people to withstand.
Well, if you read The Sunday Times front page article it would appear that these rules and controls may have been ignored, and because of that, thousands of investors had lost all or most of their money, when they thought they were doing the right think and supplementing their income for their old age.
Now, many of these investors have lost their entire next egg and did not know which way to turn.
One such investor caught up in this mess was Geoff Morris, from Cambridgeshire. He had around $5million worth of investment properties, and due to getting involved in the scam discussed in the Sunday Times, actually lost the lot!
He took action not only to try and save his investments but to try and warn any other potential investors from falling into the same trap. His reward - a High Court Writ for Defamation and Libel from the developers - a crafty way of trying to silence him!
Well, that ploy didn't work, as can be seen from the Sunday Times article.
The point is if you find that you have got involved in a scam like this, first of all, try and establish whether other people have also been ensnared in the same scheme. The easiest way of doing this is to do a Google search, like 'Developer name Scam' or Developer name fraud.'
Also, try and use your resolve, look to mind control programs like NLP, or films like 'The Secret.' These methods will at least do a good job of keeping you sane. Last, of all, tell people about your situation. Don't bottle it all up, like you are too embarrassed to share it with anyone. Scamsters thrive on this silence. It could wreck your relationships, drive you to a stress-related heart attack, or even drive you to suicide.
You must try and keep control, and if you have lost all your money , take legal action by all means, but try and write off your debts - even if it means going bankrupt - and concentrate on a new way to rebuild your fortunes.